us packaging giants agree to merger combined company would have close to usd 16 bn in sales plastics operations part of megadealin a deal that will create a new global packaging leader with a combined equity value of usd 16 bn, meadwestvaco mwv, richmond, virginia usa www.mwv.com and rocktenn norcross, georgia usa www.rocktenn.com on 26 january announced plans to merge. the new company &ndash whose name will be disclosed before the deal is expected to close in q2 this year &ndash will have combined net sales of usd 15.7 bn and an adjusted ebitda of usd 2.9 bn.while the combined company will focus mostly on paperbased packaging, plastic does play a role, too. whereas rocktenn&rsquos activities in plastics are limited to recycling, mvw uses plastic in several of its businesses, including in the pump and spray packaging systems produced by its healthcare division. the group also manufactures a wide range of plastic closures for its personal care and home & garden businesses, which also produce pumps and dispensers. in addition, its food packaging division produces plastic materials, including cpet trays.the deal still has to be approved by both companies&rsquo shareholders as well as the regulatory authorities. once the decision is final, mwv shareholders will own a 50.1 stake in the new company, while rocktenn shareholders will be in control of the remaining 49.9. this ratio, the companies said, will afford favourable tax attributes with regard to the spinoff of mwv&rsquos speciality chemicals business, which both players intend to complete once the merge has been wrapped up.rocktenn ceo steven voorhees will become president and chief executive of the new company, while mwv chairman and ceo john luke will become the nonexecutive chairman of the board of directors. the board itself will be comprised of eight directors from rocktenn and six from mwv. other appointments will be announced prior to closing, the companies said. the new group will have its headquarters in richmond and operating offices in norcross.rocktenn will bring 27,000 employees into the marriage, while mwv will bring 15,000. the new company will have locations in north america, latin america, europe and asia. 
